AM Best


A.M. Best Affirms Issue Credit Rating of Fairfax Financial Holding Limited’s Re-Opened 2.75% Senior Unsecured Notes Due 2028


CONTACTS:

Darian Ryan, CPA
Senior Financial Analyst
+ 1 908 439 2200, ext. 5449
darian.ryan@ambest.com

Jennifer Marshall, CPCU, ARM
Director
+1 908 439 2200, ext. 5327
jennifer.marshall@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - MAY 18, 2018 02:53 PM (EDT)
A.M. Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “bbb” to Fairfax Financial Holding Limited’s (Fairfax) (Toronto, Canada) 2.75% senior unsecured notes due March 29, 2028 (the notes), following the recently announced private offering of an additional EUR 150 million through a reopening of the issue. Fairfax currently has outstanding EUR 600 million aggregate principal amount of notes of this series (the original notes), bringing the total outstanding to EUR 750 million. The newly issued notes will have the same terms as the original notes, except for the issue date and the issue price, and will form part of the same series as the original notes, including with respect to interest payments. Ultimately, the notes will trade under the same ISIN and Common Code numbers as the original notes. The outlook of this Credit Rating (rating) is stable.

Following the senior unsecured notes issue, financial leverage and coverage measures remain supportive of the assigned rating. Fairfax intends to use the net proceeds of the offering to refinance and repay outstanding debt and for other corporate purposes. Fairfax’s Long-Term Issuer Credit Rating of “bbb,” its existing Long-Term IRs and the ratings of its operating insurance subsidiaries are unchanged.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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AMB# Company Name
058364 Fairfax Financial Holdings Limited